Draft law to block digital dollar

The U.S. House of Representatives Committee on Financial Services is introducing legislation that would prevent the central bank from issuing digital currency.

According to a notification Chairman Patrick McHenry said the committee will consider two bills on a potential digital dollar on September 20. In these meetings, legislators discuss the details of a bill. This is an important step before coming to the legal forum.

One of the bills is the Digital Dollar Pilot Prevention Act, which prohibits the Federal Reserve from launching pilot programs to test CBDCs without congressional approval. The bill was introduced by Member of Parliament Alex Mooney in May was brought.

The US Federal Reserve recently made a decision Launch of CBDC Rejected on the grounds that “proceeds to issue CBDC only if there is a law to that effect”. However, the Federal Reserve of San Francisco has been looking for technical positions for the CBDC program in recent months. This suggests that the digital dollar will continue to be explored.

#New: Chairman @PatrickMcHenry Announces a review of legislation to strengthen US national security and prevent the central bank from issuing digital currency.

Read more https://t.co/oy3oASJYkA

— Financial Services GOP (@FinancialCmte) September 16, 2023

The second act is an amendment to the Federal Reserve Act governing state central banks ForbiddenProviding certain products or services directly to individuals. The use of CBDCs for monetary policy and other purposes should also be prohibited.

“The Federal Reserve may not issue a central bank digital currency or digital asset under a different name or designation, but through a financial institution or other intermediary substantially similar to that of an individual,” it said. Ra Chi Thu.

The prospect of a digital dollar has sparked controversy in the US. Presidential candidates Robert F. Kennedy Jr. and Ron DeSantis spoke out against the introduction of a CBDC, citing financial privacy concerns. Proponents of CBDCs say it will allow the United States to preserve the global relevance of the dollar and encourage adoption of cryptocurrency.